Poultry Yield Based Costing

Optimizing Disassembly and Yield Economics in Poultry Processing

A large Australian-based poultry processor required a structured poultry yield based costing framework to overcome limited visibility into product costs associated with assembly and disassembly processes. Prior to implementation, home-grown systems and spreadsheets were used to calculate both actual and standard costs, resulting in inconsistent reporting and limited forecasting capability. Leadership needed a scalable environment capable of modeling yield, labor, and market-driven meat valuation across plants.

The Challenge of Assembly and Disassembly Cost Visibility

The organization lacked detailed cost insight into raw material yields across breeder farms, hatcheries, broiler farms, primary processing, and further processing operations. In addition, cost allocation methods did not fully reflect cut, range, location, or market value differences. Without integrated forecasting capabilities, the company could not generate a fully costed optimal production outlook based on forecasted demand and variable cost drivers.

How ImpactECS Enables Poultry Yield Based Costing

• Calculate raw material yields for disassembly and reassembly processes by cut, range, and plant location
• Determine standard versus actual cost variances at the BOM level
• Perform complex meat valuation based on market price, sales price, and actual cost
• Allocate labor using multiple methods including per bird, kilogram, and tray
• Model scenario changes across material, labor, overhead, and KPI inputs
• Generate an optimized production outlook based on forecasted cost data
• Deliver P&L visibility by yield, location, and market value

Business Impact Across the Protein Value Chain

• Reduce primary poultry processing time at each plant to approximately two hours
• Improve operational efficiency through cost-to-serve analytics and KPI modeling
• Provide granular operational modeling across the full production value chain
• Enable drill-down visibility into dependent processes for financial and operational insight
• Strengthen forecasting accuracy and market responsiveness

With ImpactECS, the processor implemented a governed poultry yield based costing environment that integrates financial and operational data. As a result, leadership gained transparent product profitability visibility and improved confidence in production and market decision making.

This disciplined poultry yield based costing framework created a scalable foundation for yield optimization, labor efficiency, and long-term profitability management across protein processing operations.